By 2025, the global real estate industry will be at the dawn of a transformative era. Traditional paradigms will collapse, paving the way for bold, transformative trends redefining how the sector operates and delivers value. Economic uncertainty, rising social inequality, and the Technology Supercycle are changing expectations for a sustainable built environment. Like Pluto’s symbolic transition from Capricorn to Aquarius, this era marks the end of traditional systems and the rise of collaborative, forward-thinking models. Conventional approaches will make way for unconventional ideas driven by new voices challenging the status quo. For real estate leaders, 2025 is not just a year to adapt but a year to prepare to thrive through innovation and purpose-driven strategies. The 15 trends explored herein highlight the challenges and opportunities, from a growing awareness of the global paradigm shift, place-based climate-resilient urban design, to reimagining value chains. Together, they are a call to action for real estate leaders to create conditions conducive to life in a changing era.
1. Growing Consciousness of the Global Paradigm Shift
By 2025, the real estate industry will face a landscape shaped by significant shifts in global power dynamics. The expanded BRICS+ bloc, comprising ten nations and accounting for 37.3% of global GDP, is challenging Western economic dominance. This realignment is transforming trade and investment patterns, with a notable reduction in reliance on the US dollar. Simultaneously, the digital age has ushered in a surge of global cyber-attacks, exposing vulnerabilities in personal and organisational systems. Notably, in July 2021, ten countries simulated a global cyber-attack on the international financial system, underscoring the growing threat to economic stability. Geopolitical shifts are further complicated by shifts in power (around 40% of global citizens will participate in elections in 2024), ongoing wars and new ones, supply chain disruptions, battles for rare metals, and rising costs for oil, energy, freshwater, raw materials, and other essentials. Together, these factors may precipitate a financial "reset," revealing the fragility of existing systems beset by inflation, mounting debt, and geopolitical uncertainty. For real estate CEOs, this evolving environment necessitates strategic foresight. Investment decisions must consider shifting global alliances and emerging new economic (bioregional) hubs. Leaders must reconsider traditional approaches, moving from competitive mindsets to strategies grounded in awareness, equity, and long-term resilience. Adapting swiftly to these transformative forces will be crucial for positioning organisations to thrive in a rapidly changing world.
2. Human-centric Digital Transformation
By 2025, successful digital transformation in real estate will be defined by emphasising people rather than technology solutions. There is growing recognition that an outdated organisation combined with new technology is simply an expensive old organisation. Leading organisations are prioritising a cultural shift towards flexibility, continuous learning, and agility, empowering employees to initiate transformation. For real estate CEOs, this trend underscores technology's significance in achieving strategic goals rather than viewing it as an end goal. Incremental improvements precede disruptive organisational overhauls and ensure long-term sustainability – shifting to a people-centric model positions companies to navigate an increasingly dynamic landscape more effectively. Investing in personal, team, and customer development will dominate in 2025 despite rising organisational costs.
3. Harnessing AI_nnovation
By 2025, the Technology Supercycle will usher in a transformative era driven by AI (Artificial Intelligence), advanced sensors, and the convergence of biotechnology. AI will revolutionise operations in the real estate sector, reshaping how properties are marketed, managed, and transacted. Hyper-personalised customer experiences and automated processes, like tenant management and property maintenance, will significantly enhance efficiency. Customisable solutions, such as "Bring Your Own AI" and AI Agents – expected to generate up to $42 billion in incremental value by 2029 – will empower businesses with tailored tools for predictive analytics, seamless contract negotiations, and immersive virtual property tours. This shift will also see the emergence of LAMs, PLAMs, CLAMs, and GLAMs (AI applications for personal, corporate, and government use), enabling organisations to maintain a competitive edge. However, this technological advancement brings sustainability challenges. Training large AI models, like GPT-4, consumes energy equivalent to that of a small city's annual usage, and rising inference demands amplify environmental concerns. Ethical AI practices emphasising transparency, fairness, and environmental responsibility will define industry standards. Quantum computing will revolutionise AI, climate modelling, and materials science problem-solving, as evidenced by projects like Google’s Willow. Additionally, the reallocation of resources by GAFAN (Google, Apple, Facebook, Amazon, NVIDIA) companies will further accelerate technological advancements, shaping the future of AI_innovation. For real estate CEOs, staying ahead in this transformative era will require strategic foresight and adaptability. Embracing AI-driven innovations—investing in AI knowledge and adaptation—while addressing societal challenges will be vital to maintaining competitiveness.
4. Redefining Value Chains Accountability
By 2025, value chains and their Scope 3 emissions will dominate the global real estate agenda as changing geopolitical and economic dynamics, alongside regulatory pressures, shift the industry’s priorities. Geopolitical developments such as the Draghi Report and the US under Trump’s renewed leadership highlight rising trade barriers and a pivot towards regional and local production. Resource scarcity compels real estate companies to extend beyond incremental sustainability measures and necessitates comprehensive accountability for Scope 3 emissions, which may account for up to 80% of their environmental impact. The EU Carbon Border Adjustment Mechanism heightens regulatory pressure, while Global North and South disparities advocate for fair and collaborative practices. Data becomes essential, allowing real estate leaders to devise actionable strategies that align with evolving regulations, enhance transparency, and rebuild stakeholder trust. For CEOs, this trend poses both a challenge and an opportunity: to innovate by reimagining value chains and transforming sustainability into a driver of resilience, competitiveness, and long-term value in a resource-constrained global economy.
5. Blockchain unlocked
By 2025, financial innovation will change the global real estate industry, with blockchain leading the way. Blockchain will transform traditional assets like real estate into fractional, tradable investments, unlocking capital and expanding market access. The rise of Central Bank Digital Currencies and initiatives such as Digital Cash will streamline global transactions (watch ISO 20022) and bridge traditional finance with decentralised systems. This indicates a shift towards more efficient, transparent, and inclusive financial ecosystems for real estate CEOs. The growing crypto market and decentralised finance platforms will further democratise access to capital (and other resources such as labour and materials), enabling new investment models and opportunities for wealth generation. These innovations will change how properties are bought, sold, and managed, creating greater liquidity and accessibility. CEOs must prepare for a future where digital assets drive competitiveness, fairness, and efficiency, positioning their companies to thrive in a transformative financial landscape.
6. Redefining Affordable Housing to Affordable Living
By 2025, the global housing crisis will evolve into a broader movement towards “affordable living,” shifting the focus from inexpensive product construction to systemic transformation. There is an increasing awareness that lower-cost products (houses) merely manage symptoms and primarily benefit the economy and the pockets of corporate builders, financial institutions, and governments. Real estate leaders face the challenge of prioritising sustainability, liveability, and community well-being. Solutions encompass shared living models, regenerative off-grid villages, and reimagined urban planning incorporating resilient public spaces and equitable urban ecosystems. Policies such as rent caps and anti-speculation measures stabilise the housing market while governments and industries collaborate to reform mortgages and rental frameworks. This trend necessitates a strategic shift for real estate CEOs, connecting affordability to quality of life and cultivating environments where people can thrive. By tackling rising costs, systemic inequities, and environmental challenges, this movement transforms housing into a social equity and sustainability driver and reshapes the future.
7. ESG and Certifications are dead. Long live..
By 2025, the global real estate industry will advance beyond traditional ESG metrics and certifications, focusing instead on tangible accountability and measurable impact. Investors, regulators, and stakeholders demand clear evidence of environmental and social contributions, compelling the industry to prioritise results over isolated compliance. For CEOs, this entails rethinking ESG strategies to emphasise transparency, data-driven decision-making, and real-world outcomes. Famous certification frameworks like LEED, BREEAM, GRESB, and WELL are no longer sufficient (and too expensive); companies will be expected to demonstrate continuous improvement in carbon reduction, community integration, and resource efficiency. Real estate leaders must adopt holistic, purpose-driven approaches like regenerative design and tenant-centric development that exceed minimum standards to create lasting value. This shift redefines competitive advantage, as properties with proven sustainability and social impact command greater trust and market value. In 2025, CEOs will be prepared to lead with innovation and accountability, navigating a new era of heightened expectations and transformative opportunities.
8. Place-based Climate Resilient Urban Design
By 2025, climate-resilient urban design will emerge as a global priority as cities confront escalating risks of climate disasters and rising, often unaffordable, insurance costs. Place-based solutions will serve as a cornerstone for adapting to local challenges, blending traditional knowledge with modern innovation. Inspired by gatherings like COP16, urban planning increasingly incorporates nature-based solutions that enhance resilience while safeguarding ecosystems. Green infrastructure, such as urban wetlands, permeable sidewalks, and shared green spaces, mitigates flooding, combats urban heat islands, and boosts biodiversity. Local designs concentrate on individual communities’ unique vulnerabilities and strengths, integrating natural buffers and climate-sensitive materials to endure environmental shocks. Policymakers, insurers, and urban planners collaborate to create resilient, equitable, and liveable cities that balance safety and sustainability. This trend underscores the importance of aligning development strategies with climate resilience for real estate CEOs. Leading with innovation in design and partnerships ensures that properties are future-proof, providing stability and value in an era of growing uncertainty.
9. Back to The Future: Indigenous Wisdom Meets Cutting-Edge Innovation
By 2025, the real estate industry will embrace a transformative shift that combines ancient wisdom with cutting-edge innovation to foster a more regenerative future. Communities and developers are increasingly confronting ecological guilt by restoring kinship worldviews - recognising the rights of nature and prioritising harmony with the Earth. Real estate leaders draw inspiration from Indigenous practices and local traditional ecological knowledge (LO-TEK), implementing regenerative design principles where buildings minimise damage and actively restore their surroundings. This shift cultivates a deeper connection to sustainability, driven by ancestral knowledge rooted in balance, respect, and resilience. This trend represents an urgent call for CEOs to incorporate regenerative principles into their organisations, projects, and operations. There is a growing sense that the future lies in creating spaces that meet human needs while replenishing the planet, attuned to the natural rhythms of life. The industry is forging a thriving, sustainable future by learning from the past.
10. Planetary health is Healthy People
By 2025, the relationship between planetary health and human well-being will affect the global real estate industry. Inspired by Blue Zones, where longevity flourishes through environmental harmony, forward-thinking leaders prioritise designs that benefit both people and the planet. Real estate projects now incorporate biodynamic and regenerative agriculture, providing nutrient-rich food while restoring ecosystems. Urban planning emphasises green spaces, walkable neighbourhoods, and maternal health infrastructure, such as breastfeeding areas and prenatal care centres, fostering healthier lifestyles and reducing stress. These initiatives enhance longevity and strengthen community ties, making cities more liveable and resilient. At the same time, many young families are leaving major U.S. cities (not only in the US) like New York, Chicago, and Los Angeles for suburban and rural areas, driven by high costs, safety concerns, and improvements in quality of life. This shift impacts urban areas through reduced school enrolments, lower property values, and declining tax revenues, straining public services and weakening community engagement. However, cities like Austin and Raleigh are reversing the trend by offering affordable housing, strong schools, and family-friendly amenities. Real estate leaders must align strategies with environmental stewardship and community well-being. By investing in sustainable designs, quality education, and vibrant spaces, rural villages and cities can retain families and lead toward a healthier future.
11. Nature Positive: Rise of Restorative Development
By 2025, the “nature positive” movement will transform the global real estate industry, emphasising ecological restoration. Drawing parallels to post-war reconstruction, this shift integrates nature into every facet of development, promoting harmonious coexistence between human activity and the environment. Inspired by trends like nature brutality, designs incorporate raw, natural elements and sustainable infrastructure to create spaces that rejuvenate ecosystems while addressing community needs. Global frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) hold companies accountable, urging real estate leaders to align financial strategies with biodiversity objectives. Governments are critical players, as demonstrated by Denmark’s commitment to convert 15% of its farmland to forests, showcasing a profound dedication to reversing environmental degradation. For real estate leaders, this trend necessitates transitioning to restoration practices that blend policy innovation, bold design, and ecological restoration. The outcome is beneficial: developments that fulfil growing expectations for sustainability while creating lasting value for stakeholders and a thriving legacy for future generations.
12. Urban Environment Meets Regenerative Entrepreneurship
In 2025, regenerative entrepreneurship for urban environments will become increasingly significant. Real estate leaders will transform as entrepreneurs regard cities as ecosystems and establish organisations that drive evolution across events, consulting, education, development, and research. This shift underscores community resilience and unlocking potential for urban challenges, including materials, energy, water, liveability, and space revitalisation. Inspired by the enduring spirit of play – exploratory and unconstrained by rigid outcomes – regenerative entrepreneurship nurtures innovation through collaboration and reimagining urban life and business assumptions. For real estate leaders, this trend presents opportunities to integrate regenerative principles into development projects, aligning with the rising demand for purpose-driven initiatives. The focus shifts from profit-driven growth to creating systemic value by creating conditions conducive to life. By forming strategic partnerships with regenerative entrepreneurs, city and real estate leaders can position their portfolios at the forefront of this movement, ensuring relevance in a changing, life-centred urban landscape.
13. Dead of Factory-Farmed Unicorns’ mindset
In 2025, the global real estate industry will experience the ripples of a broader shift in the investment paradigm. The era of the “factory-grown unicorn” mindset (as of December 2024, there will be over 1,200 unicorns globally) – startups that are awash with capital but unsustainable – is fading, replaced by a more ergodic investment ethos, where the focus is on resilience, adaptability, and long-term value. For investors and real estate leaders, this trend indicates a change in capital flows toward ventures that align with ESG/SDG-related themes and measurable social impact. This shift is also giving rise to a new category of investors, “Adventure Capitalists,” who prioritise sectors such as climate resilience, urban sustainability, and decentralised technologies. These investors favour models like “Scale-Out,” where companies decentralise by replicating local units, and “Deep-Scale,” where niche offerings are refined before expanding more broadly. This marks a profound shift towards meaningful, lasting progress in the built environment.
14. Rise of Outsiders and Emotional Return on Investment
In 2025, the real estate industry will experience disruption from “Outsiders”: individuals and groups who challenge traditional norms with fresh perspectives and intentional innovation. Often hailing from younger generations like Gen Z and Gen Alpha, these outsiders prioritise creativity, inclusivity, and transformative growth, altering how the industry tackles challenges. Their antifragile mindset converts uncertainty into opportunity and drives projects that emphasise authenticity, diversity, and sustainability. For real estate CEOs, this shift necessitates embracing unconventional talent and nurturing environments that encourage bold ideas and innovative thinking. From immersive cultural exploration to mindfulness-based design, the Outsiders’ emphasis on experiences shapes how properties are conceptualised and marketed, aligning with the increasing consumer demand for meaning and connection. Simultaneously, they are redefining the Emotional Return on Investment (EROI) for success. Real estate brands must transcend utility to create spaces and experiences that evoke emotion, inspire loyalty, and build deeper connections with stakeholders. By prioritising experience, co-creation, and meaningful engagement, CEOs can position their portfolios for long-term relevance in a purpose-driven environment.
15. Rethinking Value
In 2025, the real estate industry will profoundly transform how value is defined and delivered. Value will no longer focus solely on material accumulation but prioritise intangible assets such as trust, connection, and well-being. People increasingly demand spaces that align with their values and identities, with freedom, health, and community at the forefront of their decision-making. For city and real estate leaders, this means reimagining areas and properties as facilitators of purposeful living, with well-being, creativity, and meaningful engagement as key design principles. Health, leisure, and active participation will transition from optional luxuries to essential components, driving demand for spaces that foster holistic lifestyles and inspire collaboration. Financial metrics will remain critical, but money will increasingly be seen as a driver of safety, experiences, and purposeful living. This shift requires leaders to create environments prioritising sustainability, human connection, and depth. Leaders must align their strategies with this evolving definition of value, position their portfolios effectively, and develop new value models to thrive in a purpose-driven, community-focused future.
Shift happens
In 2025, the global real estate industry will continue its transformative period as part of a new era, reflecting the symbolic transition of Pluto from Capricorn to Aquarius. This era marks the end of rigid, traditional systems and the rise of collaborative, forward-thinking value models. The 15 trends outlined here highlight the potential for the real estate industry to redefine itself in response to shifting power dynamics, rapid technological innovation, and growing demand for sustainable, life-centred solutions. This is not just about surviving disruptions and solving problems of the past but creating conditions that unlock future potential from a holistic perspective. For real estate CEOs, the call to action is clear: aligning with these transformative trends is essential to building long-term relevance and success. As the real estate world evolves, those who embrace this shift will unlock its full potential and shape a resilient and thriving future. Here’s wishing you a blooming 2025!
Author:
Menno Lammers
For Menno's Tour for Regeneration, go to www.mennolammers.com
Comments